Federal judge Jed Rakoff has a different opinion with another judge that Ripple Labs token is not a security when sold to the public on secondary markets.
While overseeing the SEC lawsuit against Terraform Labs and its founder, Do Kwon, Rakoff said he rejected the distinction made between public and corporate sales.
Impact of Ripple decision in Terra case
Jed Rakoff, a federal judge in the US, took a different path in the Terraform Labs case due to the decision in the Ripple Labs case. It is among the rumors that the attitude in the case may change after this decision.
Judge Rakoff, while overseeing the SEC case against Terraform Labs and its founder Do Kwon, said he rejected the distinction made between public and corporate sales.
This decision does not overturn the previous decision of US District Judge Analisa Torres, but it has rekindled uncertainty about the status of digital assets. The SEC asked other judges not to accept Torres’ reasoning and said it was considering the appeal process. Rakoff reopened the issue by refusing Kwon and Terraform’s request to dismiss the SEC’s lawsuit against them.
Such situations still create great uncertainty in determining the regulatory classification of crypto and digital assets. Classification of digital assets as securities is important for the projects in question to comply with regulations and meet legal requirements. However, the crypto market is still in a regulatory uncertain environment, as different approaches and decisions exist among regulatory agencies at the moment.
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